Elevra Lithium has signed an offtake agreement to supply spodumene concentrates produced at its North American Lithium (NAL) business to Canada’s Mangrove Lithium.
Under the terms of the non-binding agreement, Elevra could supply up to 14,000 tonnes per year of spodumene concentrate to Mangrove at market-related prices.
The proposed supply would be for an initial five years, starting in 2028 and ramping up to 144,000 tonnes per year by 2030, representing approximately 46 per cent of estimated sales volume.
Elevra’s CEO Lucas Dow said: “Signing this non-binding memorandum of understanding with Mangrove marks an important step in strengthening our commercial position while supporting the Canadian government’s priority to build a secure critical minerals supply chain.
“By supplying North American Lithium’s production to a local partner, we expect to improve our cost efficiency and reinforce the competitiveness of our operations.”
Elevra said the agreement could improve the economics of NAL by reducing freight and logistics costs as it would supply spodumene concentrate to a local converter, creating one of the shortest mine-to-chemicals supply chains in the industry.
Mangrove plans to process the spodumene concentrate into battery-grade lithium hydroxide to support the establishment of a domestic battery supply chain in Canada.
Mangrove’s facility would have the capacity to produce 20,000 tonnes of battery-grade lithium a year, enough to support the production of approximately 500,000 EVs.
Test works is being completed on NAL spodumene and results are expected in the third quarter of 2026.
“Partnering with Elevra to source Canadian spodumene concentrate is a natural strategic fit for Mangrove,” Mangrove chief commercial and strategy officer Annie Liu added.
“Today, most lithium refining happens overseas, resulting in the loss of downstream value from Canada’s raw resources.
“By locating conversion close to the feedstock, we enhance supply chain security, support the creation of high-value domestic jobs and advance Canada’s critical minerals strategy.”
Elevra and Mangrove plan to negotiate a definitive agreement at a future date, subject to Mangrove making a final investment decision prior to June 2027 for the construction of the lithium conversion facility.